Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social engagement
• Corporate governance

Environmental Achievements

• Reduced power consumption by an estimated 274,000 kWh a year, equivalent to the amount absorbed by 14,000 trees.
• Achieved a 3% reduction in carbon dioxide emissions (compared to 2011 baseline) by the end of 2013.

Social Achievements

• Donated NT$171.89 million in 2013.
• 14,578 employees volunteered 51,362 hours in 2013.
• Imparted financial knowledge to nearly 20,000 students through the “Future Tycoon Outreach Program”.
• Taipei Fubon Bank Charity Foundation’s “Giving Family Caregivers a Breather Excursions” campaign organized 197 events attended by 5,418 people.

Governance Achievements

• Received a Recognition Award for corporate governance from Corporate Governance Asia for the fifth consecutive year.
• Named the “Most Admired Company” in the domestic financial holding sector by CommonWealth Magazine for the fourth time in five years.
• Ranked fifth for Corporate Citizenship in the large-scale company category by CommonWealth Magazine.

Climate Goals & Targets

Environmental Challenges

• Increased frequency of extreme weather events impacting businesses.
• Growing challenges of elderly care.
• Need to reduce carbon emissions.

Mitigation Strategies

• Developed “Weather Insurance” to protect companies from weather-related losses.
• Developed risk assessment models for natural disasters.
• Offered corporate loss control seminars and integrated natural disaster risk management services.
• Implemented energy-saving measures (energy-efficient lighting, automatic switches, etc.).
• Developed a system to take inventory of greenhouse gases under the ISO 14064-1 standard.

Supply Chain Management

Responsible Procurement

• Green purchases totaled NT$163.57 million in 2013.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: GRI G4 core option, AA1000, United Nations Global Compact, Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-listed Companies, ISO 26000

Certifications: ISO 14064-1

Third-party Assurance: British Standards Institution

Sustainable Products & Innovation

• Weather Insurance
• Multiple Catastrophic Illness Health Insurance
• Mobile banking services
• Mobile insurance services

Awards & Recognition

• Recognition Award for corporate governance from Corporate Governance Asia
• “Most Admired Company” in the domestic financial holding sector by CommonWealth Magazine
• “Best Risk Management Award” by Taiwan Academy of Banking and Finance
• “Risk Management Gold Award” by Taiwan Insurance Institute
• “Best Corporate Investor Relations” by Corporate Governance Asia

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Engagement
• Corporate Governance

Environmental Achievements

• Reduced carbon emissions (specific figures provided in the report but not easily extractable in a quantified format)
• Purchased 528,000 kWh of green electricity
• Green purchases totaled NT$71.33 million

Social Achievements

• Launched the ‘Immediate Assistance’ program, handling over 4,000 cases (including many non-Fubon customers)
• Implemented the ‘Budding Tycoon Outreach Program,’ reaching 54 schools
• 21,579 people volunteered, contributing 83,085 hours
• Total donations amounted to NT$164 million

Governance Achievements

• Received international certification for its CSR report (GRI G4 core option and AA1000 standard)
• Strengthened risk management functions using international models
• Improved information disclosure and transparency, earning an A++ rating
• Enhanced board independence, with over half of the members being outside directors

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on operations and investments
• Social issues such as pollution and food safety
• Potential market volatility

Mitigation Strategies

• Developed green credit program based on Equator Principles
• Incorporated sustainability into credit policies
• Developed risk management systems and controls
• Strengthened information disclosure and transparency
• Improved corporate governance practices

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Earthquakes

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, UN Global Compact, Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-listed Companies, ISO 26000 social responsibility standard

Certifications: AA1000, ISO 27001 (Information Security Management System)

Third-party Assurance: British Standards Institution

Sustainable Products & Innovation

• Green loans
• Weather insurance
• Microinsurance
• Long-term care insurance

Awards & Recognition

• Most Admired Company (CommonWealth Magazine)
• Leading corporate citizen (CommonWealth Magazine)
• Golden Service Award (CommonWealth Magazine)
• Best Service Award (Business Today)
• Faith, Hope, and Love Awards of Insurance
• Best Brokerage Service (Wealth Magazine)
• Recognition Award for corporate governance (Corporate Governance Asia)
• Platinum Award for Corporate Award (Asset)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Commitment
• Corporate Governance

Environmental Achievements

• Reduced carbon emissions by 251.68 metric tons CO2e from 2014; subscribed to 1 million kWh of green energy in 2015, the biggest commitment of any financial services provider; received “Commercial Building Energy-saving Label” honors from the Taipei City Government; green purchases totaled NT$258 million.
• 1% reduction of CO2e emissions in a single year (short-term goal); at least 5% reduction of CO2e emissions in five years (long-term goal)

Social Achievements

• Launched a “Senior Living Services Network” to help customers prepare for retirement; introduced Taiwan’s first crop insurance; signed a collective bargaining agreement with the Taipei Fubon Bank and Fubon Securities unions; developed social welfare campaigns closely tied to Fubon’s core competencies; engaged in public welfare activities in several fields through the philanthropic platform created by Fubon’s four foundations; championed exercise and sports through wide-ranging sports sponsorships.
• 7,000 customers applied for debt consultations, bringing the total number of customers receiving help in paying off their debt at 45,000 as of the end of the year.

Governance Achievements

• Received the highest rating, A++, in the Taiwan Stock Exchange’s (TWSE) 2015 “Information Disclosure and Transparency Ranking System”; finished among the top 5% of listed companies in TWSE’s Corporate Governance Evaluation System; responsibility for oversight of “CSR” and “sustainable operations” initiatives was given to the board’s “Corporate Governance and Sustainability Committee”; established sustainable lending guidelines and introduced green energy special loans; revised investment policies and guidelines and reviewed investments already made to put responsible investment principles into action; received a Recognition Award for corporate governance from Corporate Governance Asia for the seventh consecutive year in 2015, and earned a Platinum Award for Corporate Governance for the fifth year running from The Asset.

Climate Goals & Targets

Environmental Challenges

• Problems created by an increasingly aging society; the impact of climate change; shifts in investment trends; challenges brought by advances in technology; effective communication with outside stakeholders; Geopolitical Risk (Interstate conflict risk); Cyberattacks and Data Fraud or Theft

Mitigation Strategies

• Launched the “Fubon ESG Visioning Project” with five major strategies – Leading Investment, Innovative Finance, Golden Practices, Honest Lending and Tender Care – to cope with the challenges; incorporated the Sustainable Development Goals (SDGs) articulated by the United Nations in 2015; strengthening green lending and responsible investment practices; established a FinTech Office; optimizing the Company’s risk management system; established “Climate Change Management Principles” to encourage subsidiaries to act as responsible corporate citizens.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Standard of Conduct Pledge

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, torrential rains, cold spells, excessive rain, earthquakes, flooding

Transition Risks

• Shifts in investment trends; regulatory changes

Opportunities

• Green finance; renewable energy investments; development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 core option, United Nations Global Compact, Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-listed Companies, ISO 26000 Social Responsibility Standard

Certifications: ISO 27001 (Information Security Management Systems), BS10012:2009 PIMS (Personal Information Management System)

Third-party Assurance: British Standards Institution (BSI Group)

UN Sustainable Development Goals

• Not disclosed

The Fubon ESG Visioning Project is aimed at devising short, medium, and long-term development strategies and action plans consistent with United Nations Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Green energy special loans; microinsurance policies; e-services; digital banking platform; online insurance products.

Awards & Recognition

• CommonWealth Magazine’s “Most Admired Company”; CommonWealth’s leading corporate citizens; Corporate Governance Asia’s Recognition Award for corporate governance; The Asset’s Platinum Award for Corporate Governance; TWSE’s Corporate Governance 100 Index; Corporate Governance Asia’s “Best Corporate Investor Relations” and “Best CSR”; FinanceAsia’s “Best Investor Relations”; Global Views Monthly CSR Award in the “Happy Company” category; Wealth Magazine’s CSR “Excellence Award”; Taiwan Corporate Sustainability Awards’ “Creativity in Communication” award and “Taiwan Top 50 Corporate Sustainability Report” award; Asia Insurance Technology Award for “Innovation”.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 1,716.34 metric tons at main office buildings; 3% reduction in 3 years starting in 2016.
• Reduced power consumption by 746,149 kWh (-0.83%); average power consumption per capita: 2,207.95 kWh/year, signifying a reduction of 166.39 kWh.
• Reduced water consumption by 26,682 kWh (-4.97%); average water consumption per capita: 12.68 kWh/year, signifying a reduction of 1.55 kWh.
• Reduced fuel consumption by 130.6 liters (-0.14%); average fuel consumption per capita: 2.27 liters/year, signifying a reduction of 0.24 liters.
• Reduced paper usage by 1,127,821.9 kg, reducing carbon emissions by 4,781,964 kg.
• Obtained ISO 50001 Energy Management System certification for FFHC and Fubon Insurance.
• Obtained ISO 14001 Environmental Management System certification.
• Purchased 1.96 million kWh of green energy.

Social Achievements

• Launched the “Boundless Project,” establishing 40 new sales offices and increasing sales agents by 2,542 (11.6%).
• Total premiums collected for microinsurance policies amounted to NT$5.76 million (114.1% of target).
• Increased assets under management for charitable trust by 33% to NT$893 million.
• Increased donations collected through charitable trust by 78% to NT$118 million.
• Increased beneficiaries for trust for the elderly and disabled by 56 to 80.
• Increased assets under management for Trust for the Elderly and Disabled People by 64% to NT$385 million.
• Held 228 seminars and activities related to senior living, health promotion, environmental protection, and support for disadvantaged groups.
• Provided various activities, services, and promotions aimed at senior citizens through the Senior Living Services Network.
• Improved customer retirement preparation awareness through the CDM platform (270,000 customers).

Governance Achievements

• Independent directors account for 40% of all directors.
• Fubon Financial Holdings ranked in the top 5% of the Taiwan Stock Exchange’s “Corporate Governance Evaluation”.
• Included as a constituent in the Dow Jones Sustainability World Index for the first time.
• Revised internal guidelines and established “Procedures for Ethical Management and Guidelines for Conduct.”
• Implemented the “AML/CFT Program for Fubon Financial Holding Co., Ltd and Its Subsidiaries”.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (extreme weather, rainfall imbalances, typhoons, energy shortages).
• Emerging risks (data fraud/theft, asset bubbles in major economies).
• Supply chain disruptions (not explicitly stated, but implied through supplier management initiatives).

Mitigation Strategies

• Formulated “Climate Change Management Principles” and risk management procedures.
• Implemented APT prevention systems, data security measures, and social engineering prevention drills.
• Developed alternative sourcing strategies and supplier evaluation/classification system.
• Incorporated Equator Principles into credit evaluation procedures.

Supply Chain Management

Supplier Audits: 710 suppliers registered in e-procurement system; 100% signed Supplier Standard of Conduct Pledge.

Responsible Procurement

• Supplier Corporate Social Responsibility Code of Conduct
• Supplier evaluation and classification system
• Green purchasing (NT$290 million in 2017)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Rainfall distribution imbalances
• Intense typhoons
• Energy shortages

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Green financing
• Climate change insurance services
• Green investment opportunities

Reporting Standards

Frameworks Used: GRI Standards (Comprehensive level), UN Global Compact, Taiwan Stock Exchange Corporation Rules, Corporate Social Responsibility Best Practice Principles, ISO 26000, United Nations Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 50001, ISO 27001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

The report details how Fubon's initiatives contribute to these goals through various programs and strategies.

Sustainable Products & Innovation

• Microinsurance policies
• Green bonds
• Agriculture insurance
• Green vehicle insurance
• Usage-Based Insurance (UBI)

Awards & Recognition

• MSCI Global Sustainability Indexes inclusion
• MSCI ESG Rating of A
• Dow Jones Sustainability Indices Emerging Markets Indices constituent (two consecutive years)
• Dow Jones Sustainability World Index constituent
• Energy Leadership Awards - Industry and Commerce Division A (Taipei City Government)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon emission by 136,000kg through mobile service and environmental protection activities
• Green procurement (including social enterprise procurement) amounted to approximately NT$93.41 million

Social Achievements

• Invested a total of more than NT$400 million in social care projects
• 70,000 employee volunteering hours reached about 12 million people/times
• Launched the country's first statutory infectious disease term of health insurance policy
• Introduced a number of service contingency measures during the pandemic (e.g., applying insurance claims based on the latest regulation and the most preferred condition for the policyholder, providing condolence payments for medical professionals and pandemic prevention personnel, launching a video survival survey to replace physical examination)

Governance Achievements

• Compare with 2019, the number of complaints cases and complaint rate of Financial Ombudsman Institution decreased by 4.95% and 8.9% respectively
• Treating Customer Fairly Principle review ranked among the top 20% of Life Insurance Industry

Climate Goals & Targets

Environmental Challenges

• Overall economic turmoil, continued low interest rate environment, and the impact of the COVID-19 pandemic
• Reduction of liability reserves, setting the threshold for insurance premiums for death protection of life insurance, and the declaration of interest rate stabilization

Mitigation Strategies

• Strengthened corporate governance and various innovations
• Focused on protection in distribution channels, developed diversified and innovative products, developed insurance technology and strengthened digital services, ensured the compliance of company operation

Supply Chain Management

Responsible Procurement

• Supplier Corporate Social Responsibility Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events such as cyclones and floods
• Rising mean temperatures
• Changes in precipitation patterns and extreme variability in weather patterns

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14064-1, ISO 50001, ISO 14001, BS10012:2017

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 3
• Goal 13
• Goal 14

The report mentions alignment with several SDGs throughout the document, particularly SDG 3 (good health and well-being), SDG 13 (climate action), and SDG 14 (life below water).

Sustainable Products & Innovation

• Fubon Life Golden Assurance Certifiable Diseases One-year Fixed-term Health Insurance
• Fubon Life Skywalker Term Health Insurance
• Fubon Life e-Moving Online Applicable Term Life Insurance
• Fubon Life Medical Go Major Injury Term Health Insurance
• Fubon Life Smart Sugar Life Term Health Insurance

Awards & Recognition

• Asian Corporate Social Responsibility Award - Green Leadership Award
• National Enterprise Environmental Protection Award – Bronze Award
• Green Procurement Excellence Unit certification
• First prize of the “Buying Power Social Innovation Product and Services Procurement Incentive Mechanism”

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and Scope 2 GHG emissions by 4.31% in 2021 compared to 2020, exceeding the 4% target for 2021.
• Achieved a 114% achievement rate for electricity generation for self-consumption from solar installations in 2021.

Social Achievements

• Not disclosed

Governance Achievements

• Adopted the TCFD framework in 2018 and became a TCFD supporter in September 2019.
• Established a Corporate Governance and Sustainability Committee and an ESG Task Force to oversee climate governance.
• Incorporated ESG indicators into performance evaluation policies for board of directors and top management.

Climate Goals & Targets

Environmental Challenges

• Physical risks from extreme weather events (flooding, typhoons) impacting operations and asset valuations.
• Transition risks from changing regulations, carbon pricing, and technological shifts affecting investments and loan portfolios.
• Potential impact of carbon fees/taxes on loan clients and suppliers.

Mitigation Strategies

• Conducted scenario analysis and stress tests to assess physical and transition risks.
• Developed climate change management guidelines and standards for investing in/pulling investment out of specific industries.
• Implemented sustainability risk management procedures for lending and insurance.
• Monitored and managed climate-related risks in mortgage and property insurance portfolios.
• Assessed physical and transition risks of suppliers.

Supply Chain Management

Supplier Audits: 1,414 suppliers assessed for physical climate risks

Responsible Procurement

• Monitoring supplier stability and exploring alternative sourcing strategies to manage climate-related risks.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, typhoons)
• Changes in rainfall patterns

Transition Risks

• Carbon pricing
• Regulatory changes
• Technological shifts

Opportunities

• Climate-themed investments
• Green finance
• Sustainable insurance products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14064-1, ISO 14001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly vehicle insurance, usage-based auto insurance, environmental pollution liability insurance, green energy insurance, agriculture insurance.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Nature-related risks

Environmental Achievements

• Completed Taiwan’s first financial holding company plan to have multiple subsidiaries jointly purchase green power, with a purchase of 4.39 million kWh/year of green power, and achieved another milestone by becoming Taiwan’s first financial institution to extend its green power network to outlying islands.
• Fubon Insurance’s headquarters demolition was the first demolition project in the world to receive UL2799 Zero Waste to Landfill Gold-level validation.
• Carbon reduction in 2023 grew by more than 30% from 2022 to 5,953 tons of CO2e.

Social Achievements

• Launched the “Run for Green™” campaign and a sustainability vision blueprint in 2021.
• Held a “Think ESG Masters Forum” in 2022 and 2023, focusing on ESG trends and supplier carbon management.
• Held “ESG Seminars for SMEs” in 2023 to strengthen SMEs’ understanding of ESG issues.

Governance Achievements

• Established a climate governance framework with the board of directors as the top oversight unit.
• Established “Fubon Financial Holding Co., Ltd. and Subsidiaries Engagement Guideline” and “Fubon Financial Holding Co., Ltd. and Subsidiaries Voting Guideline”.
• TCFD report received the highest Level 5+: Excellence grade declared by BSI.

Climate Goals & Targets

Environmental Challenges

• Transition risks (policy and legal, technology, market, and reputational risk)
• Physical risks (acute and chronic, including floods, extreme rainfall, droughts, slope disasters, biodiversity loss)
• Supply chain disruptions due to climate events
• Difficulty assessing new low-carbon technology risk
• Increase in financial risk caused by a fall in the value of assets in high-carbon industries

Mitigation Strategies

• Strengthened quantitative analyses of climate-related risk, including physical risk assessment and climate change scenario analysis.
• Established Engagement Guideline and Voting Guideline and planned engagement workshops to help companies invested in and loan clients with their net-zero transitions.
• Complied with the LEAP approach recommended by the TNFD to conduct nature-related risk assessments.
• Developed a new investment and underwriting decarbonization strategy for the coal industry and unconventional oil and gas sectors.
• Set standards for putting funds into or pulling funds out of high-carbon industries since 2021.
• Implemented an internal carbon pricing mechanism linked to Scope 2 emissions.

Supply Chain Management

Supplier Audits: On-site audits conducted on 20 of 40 key suppliers by the end of 2023.

Responsible Procurement

• Supplier ESG Sustainability Management Project
• Supplier Sustainable Development Code of Conduct
• Low-carbon sustainability assessments for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Extreme rainfall
• Droughts
• Slope disasters
• Heat waves

Transition Risks

• Carbon pricing
• Policy and regulatory changes
• Market shifts
• Reputational risks

Opportunities

• Resource efficiency
• Energy source diversification
• New product/service development
• New market access
• Improved resilience

Reporting Standards

Frameworks Used: TCFD, PCAF, TNFD, SBTi

Certifications: ISO 14064-1, ISO 14001, ISO 50001

Third-party Assurance: BSI

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green finance solutions (sustainable supply chain finance, sustainability-linked loans)
• Eco-friendly credit cards
• Green home loans
• Climate-related insurance products (eco-friendly vehicle insurance, green energy insurance)

Awards & Recognition

• Taiwan Corporate Sustainability Award for Supply Chain Management